The Following Data on Prices and Quantities for the Years

question 113

Essay

The following data on prices and quantities for the years 1995 and 2000 are given for three products. $$\begin{array} { c c c c c c } \text { Product } & 1995 \text { Price } & \text { Quantity } & \text { Product } & 2000 \text { Price } & \text { Quantity } \\\mathrm{X} & \$ 4 & 10 & \mathrm{X} & \$ 8 & 15 \\\mathrm{Y} & \$ 8 & 15 & \mathrm{Y} & \$ 6 & 10 \\\mathrm{Z} & \$ 3 & 8 & \mathrm{Z} & \$ 4 & 12\end{array}$$
-Calculate the year 2000 simple price index for each product separately.

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Definitions:

Profitability Ratio

A category of financial metrics used to assess a business's ability to generate earnings relative to its revenue, assets, equity, or other financial aspects.

Payout Ratio

A financial metric indicating the proportion of earnings a company pays to its shareholders in dividends, expressed as a percentage of the company's net income.

Times Interest Earned

Times Interest Earned is a financial metric that measures a company's ability to meet its interest obligations, calculated as earnings before interest and taxes divided by interest expense.

Inventory Turnover

A ratio indicating how often a company sells and replaces its stock of goods during a period, calculated as cost of goods sold divided by average inventory.